AP®︎ Microeconomics Unit 5: Notes & Study Guide
Prepare for your quiz, test, or the AP exam with a comprehensive review on Unit 5 of AP Microeconomics – Factor Markets.
Unit 5: Factor Markets
This unit covers factor markets, including how resources like labor are priced and allocated based on marginal productivity.
Begin with Topic 5.1: Introduction to Factor Ma...To review Unit 5, go through each of the 4 topics below.
Everything you actually need to know for your Unit 5 test, pulled directly from the AP® Microeconomics curriculum.
Introduction to Factor Markets
Introduction to Factor Markets
- What Factor Markets Are
- The Demand and Supply of Labor
- Marginal Product and Marginal Revenue Product
Changes in Factor Demand and Factor Supply
Changes in Factor Demand and Factor Supply
- How Factor Markets Work
- What Shifts Labor Demand
- What Shifts Labor Supply
Profit-Maximizing Behavior in Perfectly Competitive Factor Markets
Profit-Maximizing Behavior in Perfectly Competitive Factor Markets
- What a perfectly competitive labor market is
- Marginal revenue product and the hiring rule
- Connecting the market and firm graphs
Monopsonistic Markets
Monopsonistic Markets
- What a Monopsony Is in the Labor Market
- Labor Supply, MRC, and Why MRC Is Above Supply
- Profit-Maximizing Hiring and Wage
Notes
1 credit used · 5/5 remaining